ACCT 2521 EXAM 1 ACTUAL QUESTIONS AND ANSWERS
The cost of electricity for running production equipment is classified as: - CORRECT
ANSWER✅✅conversion cost yes, period cost no
The cost of lubricants used to grease a production machine in a manufacturing company is an example
of an - CORRECT ANSWER✅✅indirect material cost
Which costs will change with a decrease in activity within the relevant range? - CORRECT
ANSWER✅✅unit fixed costs and total variable costs
Which of the following approaches to preparing an income includes a calculation for the gross margin? -
CORRECT ANSWER✅✅traditional approach yes , contribution approach no
Kneeland corp has provided the following info:
-direct materials, CPU = 6.8
-direct labor, CPU = 4.15
-variable manufacturing overhead, CPU = 1.65
-fixed manufacturing overhead, CPP = 121,500
-sales commissions, CPU = 1.00
-variable admin expense, CPU = .50
-fixed selling & admin expense, CPP = 40,500
If 10,000 units are produced the total amount of manufacturing overhead cost is closest - CORRECT
ANSWER✅✅138,000
Bressette corp provided following info:
-direct materials, CPU = 6.2
-direct labor, CPU = 3.7
-variable manufacturing overhead, CPU = 1.25
-fixed manufacturing overhead, CPP = 10,000
-sales commissions, CPU = 1.5
, -variable admin exp, CPU = .5
-fixed selling & admin exp, CPP = 5,000
The total amount of product costs incurred to make 5,000 is closest to - CORRECT ANSWER✅✅65,750
Which is classified as both a prime cost & a conversion cost? - CORRECT ANSWER✅✅direct labor
Tirri corp has provided following info:
-direct materials, CPU = 6.85
-direct labor, CPU = 3.9
-variable manufacturing overhead, CPU = 1.25
-fixed manufacturing overhead, CPP = 22,500
-sales commissions, CPU = 1.00
-variable admin exp, CPU = .55
-fixed selling & admin exp, CPP = 7,500
If selling price is 26.2 per unit, the contribution margin per unit sold is closest to - CORRECT
ANSWER✅✅12.65
Data for most recently completed year appears below:
-est machine hours: 39,000
-est variable manufacturing overhead: 6.76 / machine hr
-est total fixed manufacturing overhead: 794,430
-actual machine hrs for the yr: 42,700
Predetermined overhead rate for the recently completed year? - CORRECT ANSWER✅✅27.13 /
machine hr
Pendergraph corp incurred 60,000 of actual manufacturing overhead costs. During the same period, the
manufacturing overhead applied to work in process was 62,000.
What is the journal entry to record incurrence of the actual manufacturing overhead costs - CORRECT
ANSWER✅✅debit to manufacturing overhead of 60,000
The cost of electricity for running production equipment is classified as: - CORRECT
ANSWER✅✅conversion cost yes, period cost no
The cost of lubricants used to grease a production machine in a manufacturing company is an example
of an - CORRECT ANSWER✅✅indirect material cost
Which costs will change with a decrease in activity within the relevant range? - CORRECT
ANSWER✅✅unit fixed costs and total variable costs
Which of the following approaches to preparing an income includes a calculation for the gross margin? -
CORRECT ANSWER✅✅traditional approach yes , contribution approach no
Kneeland corp has provided the following info:
-direct materials, CPU = 6.8
-direct labor, CPU = 4.15
-variable manufacturing overhead, CPU = 1.65
-fixed manufacturing overhead, CPP = 121,500
-sales commissions, CPU = 1.00
-variable admin expense, CPU = .50
-fixed selling & admin expense, CPP = 40,500
If 10,000 units are produced the total amount of manufacturing overhead cost is closest - CORRECT
ANSWER✅✅138,000
Bressette corp provided following info:
-direct materials, CPU = 6.2
-direct labor, CPU = 3.7
-variable manufacturing overhead, CPU = 1.25
-fixed manufacturing overhead, CPP = 10,000
-sales commissions, CPU = 1.5
, -variable admin exp, CPU = .5
-fixed selling & admin exp, CPP = 5,000
The total amount of product costs incurred to make 5,000 is closest to - CORRECT ANSWER✅✅65,750
Which is classified as both a prime cost & a conversion cost? - CORRECT ANSWER✅✅direct labor
Tirri corp has provided following info:
-direct materials, CPU = 6.85
-direct labor, CPU = 3.9
-variable manufacturing overhead, CPU = 1.25
-fixed manufacturing overhead, CPP = 22,500
-sales commissions, CPU = 1.00
-variable admin exp, CPU = .55
-fixed selling & admin exp, CPP = 7,500
If selling price is 26.2 per unit, the contribution margin per unit sold is closest to - CORRECT
ANSWER✅✅12.65
Data for most recently completed year appears below:
-est machine hours: 39,000
-est variable manufacturing overhead: 6.76 / machine hr
-est total fixed manufacturing overhead: 794,430
-actual machine hrs for the yr: 42,700
Predetermined overhead rate for the recently completed year? - CORRECT ANSWER✅✅27.13 /
machine hr
Pendergraph corp incurred 60,000 of actual manufacturing overhead costs. During the same period, the
manufacturing overhead applied to work in process was 62,000.
What is the journal entry to record incurrence of the actual manufacturing overhead costs - CORRECT
ANSWER✅✅debit to manufacturing overhead of 60,000
